Agree....$3, $4, $5 should not be on anyone's radar given the uncertainty and (costly) remediation yet to be done
If I were to guess what Alta Fox have in mind (and this is playing into the activist investor nonsense that the papers put out because hey you need content to deliver) is to advise mgmt that they have 3 businesses which is clear from EML presentation for a number of years, and only 1 of those businesses are currently face this regulatory action.
The gift card business is incredibly profitable and probably worth this market cap alone, but I suspect that they cannot grow this business significantly given their already large market share.. The digital payments businesses is dependent on the growth of open banking and is going to take a few year, but its the reloadable cards business whose growth (& perhaps innovative edge & attention) has been throttled by the actions in Europe.
As mention, if I were to guess, I would imagine Alta Fox advising mgmt to highlight G&I as a standalone business which they could flog and use the monies to grow Digital Payments while they get GPR back on the growth & innovation path......to me those 2 businesses are going to drive growth over the next 5 yrs if they can satisfy regulators that they have no underlying issues given the sensitivity of digital payments.
EML Price at posting:
68.5¢ Sentiment: Hold Disclosure: Held
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